Relevant Costing

important key to remember:

Future

Incremental

Cash-flow

In order to determine the cost to be relevant, these 3 keys must be fulfilled. If one not fulfilled, it will not be considered as relevant cost. Therefore no point to include as cost; as it is irrelevant cost.

Moreover, generally fixed cost would consider as irrelevant unless there is additional fixed cost. Whereas opportunity cost no matter what it is..the cost would be relevant.